YouLend, the leading global embedded financing platform, reports today that a growing number of UK SMEs are turning to embedded financing to secure vital capital ahead of the most important sales period of the year—Black Friday and Christmas. YouLend data reveals a 30% surge in financing applications leading up to Black Friday in 2024, with ecommerce platforms being the main driver of this jump, illustrating the growing demand for flexible financing options at the point-of-need.

As the festive season approaches, many UK small businesses face significant challenges, including inventory shortages, understaffing, and rising costs. These obstacles often prevent SMEs from fully benefitting from the year-end sales surge, even as 72% of consumers plan to shop with small businesses during the holiday season. The pressure is ever more pronounced for e-commerce businesses that are overwhelmed with soaring demand and operational pressure.

For instance, during Black Friday weekend in 2023, UK shoppers spent an estimated £13.3 billion—a 7.3% increase in sales. Despite this, many businesses were unprepared for the seasonal rush and lacked the capital needed to fully leverage the increased demand.

Looking ahead, embedded finance is emerging as a true lifeline for SMEs. Small businesses operating on platforms that already offer integrated financing solutions can quickly secure fast and convenient capital that enables them to stock up on inventory, launch marketing campaigns, and better manage cash flow. These are all crucial elements in handling seasonal challenges like returns, refunds and peak orders.

"The strong demand from small businesses around Black Friday has motivated our partners to focus on providing timely and flexible financing solutions tailored to the needs of their small business customers. Embedded finance has proven to be a critical tool for SMEs, enabling them to manage working capital, fill inventory gaps, and pursue growth opportunities during the busy holiday season,” said Jakob Pethick, Chief Commercial Officer, YouLend.

YouLend’s financing solutions offer businesses seamless access to funding through strategic partners, including e-commerce and payments platforms. In just a few clicks, businesses can apply for up to £2 million in funding and receive personalised offers within just 24 hours of applying. YouLend’s streamlined, revenue-based repayment system allows SMEs to repay a fixed percentage of future sales, providing flexibility to make larger payments during peak revenue periods and smaller ones when sales are slow. 

YouLend’s AI-powered, applicant-agnostic decisioning model also paints the most accurate picture of a business’s financial health that extends much-needed financing to SMEs who have been underserved by traditional finance providers. As a result, YouLend boasts an impressive 90 percent approval rate for applicants, well above the 64 percent average in the UK SME lending market.